Hartford Business Journal

38 HARTFORDBUSINESS.COM | APRIL 25, 2022 Editor's Take Union-friendly policies won't help CT's business climate It's no secret that Connecticut is a blue, union-friendly state. But recent pushes in the General Assembly to pass new pro-labor legislation or workplace mandates will hurt the state's business climate and economic recovery coming out of the pandemic. First, the state Senate on April 12 passed a bill that would provide unemployment benefits to striking workers, something only a handful of other states allow. Another bill awaiting Senate action would prohibit employers from requiring workers to attend company-sponsored meetings primarily intended to convey an employer's opinion about various matters, including unionization efforts. There's also a proposal that requires certain companies — including larger retail and restaurant chains — to provide employees at least 14 days advance notice of their work schedule. The so-called Fair Work Week bill also requires companies to pay hourly workers for shifts that get canceled with less than a week's notice. Last year, state lawmakers approved bills that required: employers to recall certain workers laid off during the pandemic in order of seniority; and developers of all renewable energy projects to pay employees the prevailing wage, something typically required only in public works projects. Many of these bills originated in the Labor and Public Employees Committee, which has become the target of much criticism from the business community, including the Connecticut Business & Industry Association. According to a report published in November by the Office of Legislative Research (OLR), the labor committee has passed 28 workplace mandates since 2016. Each of the mandates "either created a new requirement for private-sector employers to meet, tightened an existing requirement, or prohibited [employers] from taking certain actions," according to the OLR report. Mandates have included everything from gradually increasing the state's hourly minimum wage to $15 by June 1, 2023, to establishing a paid family and medical leave program for companies of all sizes, and requiring employers to provide job applicants and employees with wage ranges for their positions. Many of these mandates come up on an annual basis and don't get through the legislature, but it only takes the approval of one or two a year to create a more challenging business environment. Waning influence This is not meant to be an anti- union column. Organized labor has its place in the economy, and employers with unionized workforces ought to negotiate wages, benefits and other perks in good faith. And there are good intentions behind many of these proposals, including trying to secure higher pay and greater job security for workers, some of whom earn wages that make it difficult to make ends meet. But every new mandate places additional cost and administrative burdens on employers, many of which are trying to recover from the pandemic, and feeling significant pressure from inflation and the labor shortage. Some are also competing in a global marketplace where cost and regulatory differences between states and countries can influence where companies invest capital and resources. In some ways, it seems like these laws or bills aim to make up for the waning influence of unions in Connecticut and across the country. In 2021, union members accounted for 14.6% of wage and salary workers in Connecticut, down significantly from the 1995 peak of 20.2%, according to the New England Office of the U.S. Bureau of Labor Statistics. Connecticut had approximately 223,000 union members last year. As we head into the final weeks of the legislative session, lawmakers should reject any new workplace mandates. More importantly, the General Assembly needs to change its long-term mindset. Connecticut does not need to be a testing ground for every new worker protection. And just because a few other states have adopted a new mandate, doesn't mean Connecticut should follow suit. If lawmakers really want to improve the economic fortunes of the state, they would be better off considering and adopting legislation that will make it less costly and easier to do business here. Strengthening Black businesses is good for CT, America By Anthony Price Capitalism works best when businesses innovate and create jobs. This was not the case when the COVID-19 pandemic struck in 2020. While all small businesses (companies with fewer than 500 employees) were affected, it flattened Black businesses like a tornado, impacting them far more than other companies. From a public policy perspective, two questions come to mind: Why were Black businesses impacted more than other businesses? What can be done to strengthen Black businesses? The answers are essential because Black businesses play a vital role in their communities. When the U.S. House of Representatives Small Business Committee released the report "The State of Black-Owned Businesses in America" in February 2022, Chairwoman Nydia M. Velázquez stated, "I'm hopeful that this report will provide a sober look at the reality facing Black business owners and help provide a path forward in terms of recovery." According to the report, "In 2020, Black business ownership rates dropped 41% between February and April 2020, the largest [decline] of any racial group." While "Black Americans owned 124,551 employer businesses, they represented just 2.2% of all employer businesses (the 5.7 million employer businesses with at least one employee)," the report found. The challenge The Brookings Institution, a nonprofit public policy organization based in Washington, D.C., released a report in December 2020 entitled: "To Expand the Economy, Invest in Black Businesses." A key finding is that "The underrepresentation of Black businesses is costing the U.S. economy millions of jobs and billions of dollars in unrealized revenues." Black people comprise 14.2% of the U.S. population. At a time when America is becoming more "racially and ethnically diverse," Black-owned employer firms are not keeping up with the pace of the country's population growth. Historically, Black businesses have faced challenges and gaps in three areas: Access to capital, mentorship (access to a mentor), and access to business opportunities. Compounding these issues, Black businesses face "institutional discrimination and social inequalities." Most Americans build wealth through homeownership. Black homeownership lags behind that of whites. Furthermore, "The median Black household's wealth ($9,000) is nearly one-fifteenth that of non-Black households ($134,520)," the Brookings Institution report said. The report states that Black homes are "devalued by an estimated sum of $156 billion — the equivalent of more than 4 million firms, based on the average amount Black people use to start their businesses." Available resources Capital is necessary. Connecticut is helping. The state Department of Economic and Community Development (DECD) provides financial support to HEDCO, a nonprofit lender based in Hartford that lends at reasonable interest rates to small businesses throughout the state, including many Black businesses. Technical assistance is needed to help build up businesses. The Black Business Alliance (BBA) is a statewide organization based in Milford, supported by DECD funding. The BBA provides access to capital, technical assistance, space to showcase retailers, and networking opportunities. Ann-Marie Knight, the executive director, says, "We've become a catalyst for change. We can be an organization that speaks on behalf of Black businesses." Led by volunteers, ShopBlackCT. com is a free, online Black-owned business guide. Founder Sarah Thompson and her colleague Yvette Young work at The Village for Families in Hartford. ShopBlackCT.com has over 1,700 businesses listed on its website. Young says, "We offer Black businesses visibility and marketing support." Frank Dixon is the state director of the Connecticut Procurement Technical Assistance Center, which helps businesses access government contracts. Funded by the Department of Defense and DECD, the organization assisted clients to secure $299 million in 2021. "There are many contracting opportunities at the federal and state level," Dixon said. "Trillions of dollars are spent every year, and minorities, women and veterans can take advantage of socioeconomic set- aside programs." In the end, supporting Black businesses is good for the economy — and America. Anthony Price is the founder and publisher of Mini Books. He is an entrepreneur, writer and former economic development executive. Anthony Price Greg Bordonaro Other Voices

• Cover